Gsk Plc · LSE:GSK
Gsk — Investor Day (September 2018)
43 slides from Gsk's investor day presentation, Sep 21, 2018
Slide 1: GSK Consumer Healthcare
GSK Consumer Healthcare Friday, 21st September 2018
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation may contain forward-looking statements. Forward-looking statements give the Group’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly t
Slide 3: Global leader in Consumer Healthcare
Global leader in Consumer Healthcare 1 Competitive geographic >£7.8 billion net sales footprint Proven track record of Attractive returns delivery Strong and increasing Strong portfolio capabilities 1. 12 month net sales year ending 31 December 2017 3
Slide 4: Leadership positions in key categories and segments
Leadership positions in key categories and segments Competing in a £135 billion global market Global leadership Regional leadership OTC Oral Health Skin Health Nutrition #1 in global #1 in therapeutic Regional leader in #2 in Asia Pacific respiratory 1 oral health 2 skin health1 & 3 nutrition market
Slide 5: Global leader in OTC and therapeutic oral health
Global leader in OTC and therapeutic oral health Competing in a £135 billion global market, including Skin and Nutrition £99bn OTC market £22bn Oral £22bn oral care market 1 2 Market share (%) Market share (%) 4.3 Colgate 26.6 Bayer 4.1 Top 5 P&G 17.2 19.6% Sanofi 4.1 Top 5 Johnson & 4.1 9.9 65.8% J
Slide 6: Consumer healthcare trends
Consumer healthcare trends Positive long-term drivers Increasing health awareness and self care Ageing population 1 77% of consumers want to take 2 more control over decisions 1.4 billion aged 60+ by 2030, about their health an increase of 0.5 billion vs 2015 Emerging middle class Innovation 3 Almos
Slide 7: Industry dynamics
Industry dynamics Sources of short-term variability Timing and strength of allergy and Seasonal cough/cold season Switches Growth followed by private label entry Economic variability (e.g. Brazil, Saudi Arabia) Emerging Government regulatory changes market dynamics (e.g. Indian GST and demonetisatio
Slide 8: Our Consumer Healthcare priorities
Our Consumer Healthcare priorities Our purpose: to help people do more, feel better, live longer Our strategy: meet the everyday healthcare needs of consumers by building consumer preferred and expert recommended brands, differentiated by science and insight-driven innovation Our priorities: Innovat
Slide 9: A winning strategy for growth
A winning strategy for growth Sustained above-market growth and strong operating margin progression Building consumer preferred and expert Performance recommended brands Winning with shoppers, customers and experts Accelerate Emerging Market growth Seizing the digital opportunity Drive gross margin
Slide 10: Building consumer preferred and expert recommended brands
Building consumer preferred and expert recommended brands Power and core brands driving >90% of growth Power brands • Higher gross margin •• Global Strongpresence in over x markets right to win • [MFH] Higher gross margin •• Innovation focus in >70 markets Global presence • Greater returns on invest
Slide 11: Building consumer preferred and expert recommended brands: Sensodyne
Building consumer preferred and expert recommended brands Sensodyne: >£1 billion net sales and over ten years of double-digit growth Sensodyne vs Toothpaste market Sensodyne Toothpaste Market ex Sensodyne Sales indexed to 2007 1 +11% CAGR +5% CAGR 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 12: Building consumer preferred and expert recommended brands: Voltaren
Building consumer preferred and expert recommended brands Voltaren: creating the world’s leading topical analgesic, >£600 million net sales Voltaren vs Pain market Voltaren Pain Market ex. Voltaren Sales indexed to 2007 1 +11% CAGR +4% CAGR 1999 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 13: Winning with shoppers, customers and experts
Winning with shoppers, customers and experts Role of the expert is critically important Driving dental recommendation 1 70% of OTC brands globally sold in Improving sales force execution pharmacies and drug stores 2 70% of trial for Business partner to retailers Sensodyne is driven by dentist recomm
Slide 14: Winning with shoppers, customers and experts
Winning with shoppers, customers and experts Go-to-market approach varies substantially by market Germany – pharmacy >50% of sales through independent pharmacies India – distributors 800,000 stores covered by United States – mass retail GSK sales force with onward ~70% of sales through distribution
Slide 15: Drive gross margin improvement, operational efficiencies & cash discipline
Drive gross margin improvement, operational efficiencies & cash discipline 15
Slide 16: Delivering sustained above-market growth with strong margin progression
Delivering sustained above-market growth with strong margin progression 19.4% 17.7% Approaching mid 20% 15.5% by 2022 1 FY 2017 H1 2018 2022 1At 2017 constant exchange rates. Expected 20%+ operating margin by 2020 at 2015 constant exchange rates. 16
Slide 17: Seizing the digital opportunity
Seizing the digital opportunity Marc Speichert SVP Digital, GSK Consumer Healthcare
Slide 18: Seizing the digital opportunity
Seizing the digital opportunity 1 When consumers go Digital is half of all online, they consider 2 media consumption 40% more brands 3 Almost half of offline sales are influenced by 5.8%4 total FMCG sales via eCommerce online information (~2% for OTC) 1. Global Web Index 2. McKinsey 3.Forrester Rese
Slide 19: Building more meaningful consumer connections through data driven marketing
Building more meaningful consumer connections to fuel brand growth through data driven marketing 19
Slide 20: Our priorities
Our priorities 1 Upgrade 2 Boost 3 Efficient + Spark media ROI eCommerce content disruption Drive financial Step change sales Deliver best in Start small in efficiency from with omni-channel class creative disruptive bet areas Digital media tactics effectively ENABLER: Building capabilities to achie
Slide 21: Voltaren Germany
Voltaren Germany Dynamic and sequential ads A B DYNAMIC AD 1 2 3 SEQUENTIAL AD C 21
Slide 22: Our priorities
Our priorities 1 Upgrade 2 Boost 3 Efficient + Spark media ROI eCommerce content disruption Drive financial Step change sales Deliver best in Start small in efficiency from with omni-channel class creative disruptive bet areas Digital media tactics effectively ENABLER: Building capabilities to achie
Slide 23: Boost eCommerce
Boost eCommerce Building best in class executional capability that drives brand growth drive improve accelerate Findability Conversion Performance Keyword optimisation drives Content that informs and builds Category activations drive traffic organic search improvements trust and equity to drive purc
Slide 24: Alli growing share through eCommerce activation
Alli growing share through eCommerce activation 24
Slide 25: Our priorities
Our priorities 1 Upgrade 2 Boost 3 Efficient + Spark media ROI eCommerce content disruption Drive financial Step change sales Deliver best in Start small in efficiency from with omni-channel class creative disruptive bet areas Digital media tactics effectively ENABLER: Building capabilities to achie
Slide 26: Headache visualisations / GIFS for social platforms
Headache visualisations / GIFS for social platforms Instagram Stories FRAME 1 FRAME 2 FRAME 3 FRAME 4 26
Slide 27: Digital programmatic video
Digital programmatic video Excedrin pre-roll followed by contextually relevant video 27
Slide 28: The special editions
The special editions Messaged via social, digital and earned (PR) media 28
Slide 29: Our priorities
Our priorities 1 Upgrade 2 Boost 3 Efficient + Spark media ROI eCommerce content disruption Drive financial Step change sales Deliver best in Start small in efficiency from with omni-channel class creative disruptive bet areas Digital media tactics effectively ENABLER: Building capabilities to achie
Slide 30: Bringing the outside in: Digital Advisory Board
Bringing the outside in: Digital Advisory Board Dana Anderson Saj-Nicole Joni Rudina Seseri Bina Chaurasia Chief Transformation Officer CEO Founder and Managing Partner Chief People Officer MediaLink Cambridge International Group Glasswing Ventures Tanium Karenann Terrell Dinesh Lathi Shelly Palmer
Slide 31: Consumer led, science based innovation
Consumer led, science based innovation Richard Slater SVP R&D, GSK Consumer Healthcare
Slide 32: Building a competitive advantage through consumer-led, science-based innovation
Building a competitive advantage through consumer-led, science-based innovation Integrated category and Performance Innovation R&D innovation hubs Scientific and technical excellence Novel packaging, sensorials and claims Emerging markets and digital innovation External innovation and partnerships 3
Slide 33: Integrated innovation hubs
Integrated innovation hubs Co-located commercial and R&D facilities in 6 key locations London China - Oral Health - EM focus - Skin Health New Jersey Switzerland - Rx/OTC Switch - Respiratory - Regulatory/ - Pain Relief Medical Singapore - Nutrition and Digestive Health India - EM focus 33
Slide 34: Scientific and technical excellence
Scientific and technical excellence 34
Slide 35: Scientific and technical excellence
Scientific and technical excellence More than 25 years Rx-to-OTC switch expertise Nine >$100m US switches 35
Slide 36: Novel packaging, sensorials and claims
Novel packaging, sensorials and claims 36 36
Slide 37: Innovating for our emerging market consumers
Innovating for our emerging market consumers 37
Slide 38: Digital Innovation
Digital Innovation Hub Digital Innovation Supporting heading • Connected devices, platforms and business models • Going beyond treatment 38
Slide 39: Accelerating our external innovation and partnerships
Accelerating our external innovation and partnerships 30 innovation 5-fold increase in partnerships signed external pipeline value YTD 2018 Embedded, co-located A key enabler teams in our hubs of digital innovation 39
Slide 40: Delivering strong innovation
Delivering strong innovation Sampling of key launches YTD 2018 >20 new ‘first market’ launches and >150 global project rollouts Oral Health Sensodyne Parodontax Polident Polident Polident Clean & Rapid Relief Complete Protection Max Seal Double Power Refresh Wipes Theraflu Otrivin Digestive Tums Res
Slide 41: GSK Consumer Healthcare meeting everyday healthcare needs and delivering shareholder value
GSK Consumer Healthcare meeting everyday healthcare needs and delivering shareholder value 41
Slide 42: A winning strategy for growth and strong operating margin progression
A winning strategy for growth and strong operating margin progression Innovation Performance Trust • Brilliant execution of launches • Sustained above market growth • Reliable supply • Strong, differentiated pipeline of • Competitive cost structure, • Improved reputation consumer-led, science-based
Slide 43: do more, feel better, live longer: Q&A
do more feel better live longer Q&A